A federal jury in Santa Ana has convicted Michelle Bisnoff, 59, of running a Ponzi scheme that defrauded investors of nearly $2 million through a fake smart ring company called Esos Rings.
Bisnoff was found guilty of securities fraud, wire fraud, money laundering, identity theft, and COVID-relief fraud. Prosecutors say she raised funds by claiming she owned patents for wearable rings designed to function as debit cards and by falsely asserting that Apple and Roc Nation were backing orders from Walmart and Target.
The reality of the business operations differed significantly from these claims. Bisnoff sold only six rings to Walmart, with three subsequently returned. No Target deal materialized, and neither Apple nor Roc Nation provided any backing for the venture.
Rather than generating legitimate business returns, Bisnoff used funds from new investors to pay earlier backers, a classic Ponzi scheme structure. Trial evidence revealed she spent investor money on personal expenses, including monthly rent exceeding $15,000. Additionally, she obtained a $150,000 COVID relief loan under an assumed name for personal use.
When investors questioned the lack of promised returns, Bisnoff provided various excuses. According to one victim's trial testimony, these explanations were characterized as "dog-ate-my-homework" type excuses. She also attempted to embezzle approximately $550,000 from an employer and issued checks that bounced.
Of the nearly $2 million Bisnoff collected, investors lost approximately $1.4 million.
Bisnoff is scheduled for sentencing on January 21, 2027, and faces up to 20 years in prison on the most serious counts.
